The business intends to use the main funding to improve production and R&D, increase brand awareness, and create a health-tech ecosystem around its goods.
The firm stated on September 29 that Kapiva, a contemporary Ayurvedic brand located in Bengaluru, has secured more than $60 million (Rs 510 crore) in a Series D fundraising round headed by 360 ONE Asset and Vertex Growth, with participation from current investors Vertex Ventures Southeast Asia & India and 3one4 Capital.
Earlier this month, Moneycontrol exclusively revealed that the firm was in negotiations to raise between Rs 300 and Rs 330 crore (about $40 million) in an internal round in order to expand its business and increase its market share.
Including $28 million (Rs 240 crore) in new capital, 40% of the whole round is main and 60% is secondary. Fireside Ventures, an early funder, was able to depart thanks to the secondary component.
The business intends to use the main financing to improve production and R&D, increase brand awareness, and create a health-tech ecosystem around its goods.
For the transaction, Avendus Capital served as the company’s and its shareholders’ only financial adviser.
Robust sales growth with a breakeven point in reach
As a result of robust customer uptake across categories and channels, Kapiva is presently running at an annual revenue run rate (ARR) of Rs 550 crore, up from Rs 350 crore in FY25.
For the last three years, the firm has grown by more than 80% annually.
We now operate as a single-digit EBITDA negative company. The creator of Kapiva, Ameve Sharma, told Moneycontrol, “We are extremely close to breakeven and will become EBITDA positive next quarter.”
Extension of omnichannel Ayurveda
With over 500 employees, Kapiva runs its business via a wide range of distribution channels, including digital marketplaces, pharmaceutical channels, general trade, contemporary trade, and its own website.
Currently, it has over 40,000 physical locations across India.
The company’s portfolio encompasses areas such as sports nutrition, daily energy, diabetes, blood pressure, cholesterol, liver care, hormonal balance and daily wellness.
“Our goal was to establish customer confidence by providing facts rather than simply assertions. This support demonstrates our commitment to establishing Ayurveda as the go-to option for holistic wellbeing. Through a variety of platforms, including our own website, e-commerce, and an increasingly popular offline route that reaches over 40,000 retailers, we are making our items available to customers,” Sharma said.
Investors support positioning based on evidence
“Kapiva’s dedication to Scientific Ayurveda—combining contemporary research with ancient formulations—has allowed them to establish a distinct product range with great customer trust,” said Chetan Naik, Senior Fund Manager and Strategy Head – Technology at 360 ONE Asset. With an evidence-based strategy that focuses on diabetes, hypertension, energy, liver function, and other chronic use cases, Kapiva stands out in the wellness industry‘s fundamental move toward preventative healthcare.
“India’s wellness legacy has worldwide appeal,” said James Lee, General Partner of Vertex Growth Fund. By approaching product development and formulations with a scientific and research-based approach, Kapiva modernizes Ayurveda. We are thrilled to back the Kapiva team‘s goal of enabling customers all over the globe to access scientifically proven Ayurvedic goods, which are currently industry leaders in areas like diabetes treatment and fitness.
Ahead, health-tech wagers
In order to make Ayurveda-driven healthcare more individualized and accessible, Kapiva said that it would invest in developing health-tech skills.
By integrating technology-driven solutions with its product ecosystem, the firm hopes to assist customers in managing chronic ailments and enhancing long-term wellbeing.